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Payment Protection Insurance
What is Payment Protection Insurance?
Payment protection insurance (PPI) is insurance that will pay out a sum of money to help you cover your monthly repayments on mortgages, loans, credit/store cards or catalogue payments if you are unable to work. This may be as a result of illness, accident, death or unemployment and will be covered on your policy.
Do you pay PPI on life insurance?
This is called Payment Protection Insurance or PPI. PPI can cover your loan repayments if you have to stop work because of illness, an accident, you become disabled or you lose your job. Most policies also include a life benefit which will pay off the outstanding balance on a loan or card if you die.
What is a payment protection plan?
DEFINITION of 'Payment Protection Plan' An optional service offered by some credit card companies and lenders that lets a customer stop making minimum monthly payments on a loan or credit card balance during a period of involuntary unemployment or disability or cancels the balance owed if the borrower passes away.
Can I claim back my mortgage payment protection insurance?
Home cover: Payment protection insurance on a mortgage can be a valuable safety net, but if it would not have paid out, or you were not given the correct information, you may have been mis-sold it. It could protect your mortgage repayments if you are involved in an accident, suffer sickness or become unemployed
Why has PPI been mis sold?
How were the banks mis-selling PPI? Payment Protection Insurance is designed to cover loan or credit card payments if you cannot work, for example, if you become ill or lose your job. Banks and other lenders sold PPI to their customers without fully explaining what it covered.